[Bojo, Battery] Rekindled Electric Vehicle Safety Controversy... Spotlight on K-Battery Technology

Fire Vehicle Equipped with Chinese NCM Battery
Three Domestic Battery Companies Focus on Safety Technology Development
Advancement of BMS Technology for Battery State Management
"Concerns Over Prolonged Chasm Due to Fear Spread"

Editor's Note'Bojo, Battery' is a series that takes a closer look at the battery industry, which has emerged as the center of next-generation advanced industries. It examines the agile movements, strategies, and conflicts among governments and companies worldwide vying to dominate the battery manufacturing ecosystem. We will also cover the technological competition to create safer and longer-lasting batteries. Our goal is to serve as an 'assistant' to readers and investors by enhancing and supporting their understanding of the battery industry. We aim to share battery stories that are easy to approach.

An electric vehicle parking lot in Seoul.
Photo by Yonhap News

Recently, a fire involving an electric vehicle (EV) occurred in the underground parking lot of an apartment complex in Cheongna International City, Seo-gu, Incheon, reigniting debates over EV safety. Meanwhile, as the battery installed in the vehicle involved in this fire was revealed to be a Chinese product, attention has turned to the battery management systems of domestic battery companies.

According to industry sources on the 7th, the fire that occurred on the 1st is known to have originated from a Chinese 'Parasys Energy' NCM (Nickel-Cobalt-Manganese) battery. This battery uses a high-nickel cathode material with a nickel content exceeding 80%, which can increase driving range but has vulnerabilities in terms of safety. Notably, this battery has previously faced recalls in the United States due to fire risks, leading to analyses that poor quality is likely the cause of the fire.

The main causes of EV battery fires are broadly categorized as ▲battery defects ▲battery management system (BMS) defects ▲wiring or connector defects ▲battery aging due to rapid charging. Although investigations into the exact causes of fires are still insufficient, the number of fires attributed to battery causes increased by 18.5%, from 168 cases in 2017 to 199 cases in 2023.

Until now, China has primarily produced LFP (Lithium Iron Phosphate) batteries, as NCM batteries require a higher level of technological expertise due to their lower chemical stability. However, this incident may present an opportunity for domestic battery companies that have focused on developing NCM battery technology. While Chinese batteries are embroiled in safety controversies, domestic battery companies can emphasize their relatively higher safety and strengthen their competitiveness in the global market.

Domestic battery companies have concentrated their capabilities on developing battery safety technologies. LG Energy Solution is developing a Battery Management Total Solution (BMTS) that combines software functions with the existing BMS to monitor battery degradation status and more.

Samsung SDI has introduced a heat diffusion prevention technology that quickly vents high heat and gases generated by external shocks through exhaust ports to minimize thermal propagation between batteries. It also possesses a short-circuit cutoff device that interrupts current supply by cutting off the circuit when fire risks arise.

SK On has developed Z-folding technology that stacks separators in a zigzag pattern to completely separate cathode and anode materials. It has also commercialized composite doping technology that adjusts elemental compositions in specific ratios to suppress gases generated during battery charging and discharging. Additionally, it has developed a Battery Management Integrated Chip (BMIC) capable of detecting abnormal batteries and immediately controlling them.

Meanwhile, the battery industry is concerned about the prolonged EV chasm (temporary demand slowdown). In fact, the three major domestic battery companies recorded weaker-than-expected results in the second quarter. LG Energy Solution posted an operating profit of 195.3 billion KRW, down 57.6% year-on-year. Excluding the US Inflation Reduction Act (IRA) tax credit, it effectively recorded a loss of 252.5 billion KRW. During the same period, SK On posted an operating loss of 460.1 billion KRW, marking 11 consecutive quarters of losses, and Samsung SDI recorded an operating profit of 280.2 billion KRW, down 37.8% year-on-year.